Impact of Entrepreneurship Education in Denmark Entrepreneurship 2010 2010
Background The Danish government has since 2001 taken a range of initiatives to strengthen entrepreneurship education and analyses show that more pupils and students than earlier now receive entrepreneurship teaching and training. A recent mapping carried out by the Danish Foundation for Entrepreneurship Young Enterprise shows that approximately 8.4 percent of all pupils and students in Denmark received entrepreneurship education in the school year 2009/2010. Over the recent years a wish for documentation of the impact of entrepreneurship education in regard to skills, competences and motivation for entrepreneurship has grown quite strong. Through such a study it would be possible to evaluate the extent to which the different measures that are taken with regard to including entrepreneurship in the curricula actually make a difference. The Danish Foundation for Entrepreneurship Young Enterprise has now undertaken a first study of the impact of entrepreneurship education on the future careers of alumni. This report contains results from a survey conducted in Denmark by the Global Entrepreneurship Monitor (GEM) research group as well as findings from various international surveys and analyses. 2
Key Findings The focus has been on the impact of entrepreneurship education and training on the number of business startups, income, further education and training, and competences such as decision making, problem solving and collaboration. All studies show that entrepreneurship education and training has a positive impact on motivation for and inclination for starting business. This means that people who have studied entrepreneurship or been trained in entrepreneurship at some point actually start more businesses than people who have not received this kind of education. The Danish survey showed that people who are trained are more inclined to start a business, intend to do so and own or run an established company. Entrepreneurship education also has a positive effect on income. All analyses show a positive correlation between entrepreneurship education and income. People who are trained tend to get considerably higher income than people who are not trained. A longitudinal study by Charney and Libecap showed that entrepreneurship graduates received an average annual income that was 27 percent higher than the average annual income of non-entrepreneurship graduates. In addition, the GEM survey shows that the more people have been trained the higher income they tend to get, and the increase is considerable. 3
The studies from USA, Sweden and Denmark among JA-YE alumni show that the students found that their competences in the following areas were strengthened through their participation in the entrepreneurship programmes: Decision making Problem solving Collaboration. According to the Danish study people who have been trained in entrepreneurship at one level in the educational system tend to get more training later on at higher levels. I.e. people who have participated in entrepreneurship teaching in primary school most likely also get training in upper secondary education, as well as higher education. The conclusion is also that people who have received training as part of their education also tend to get training alongside it. The positive impact of entrepreneurship education seems to be multiple and these results justify the focus and efforts to further the extension of entrepreneurship education. Future studies by FFE-YE will focus on the correlation between course design and students propensity for starting businesses. 4
The Research Approach The Danish GEM survey is based on interviews with 2,000 persons aged 15 to 64 years in Denmark. This is a fairly representative sample of the population. The findings can therefore be generalized to the Danish population. The other studies that are referred to in this report focus on the effects of entrepreneurship education at the upper secondary level and were conducted by Junior Achievement Young Enterprise (JA-YE) in USA, England, Sweden and Denmark. Additionally, we bring results from two studies of the effects from university level education conducted by Charney and Libecap in USA and by Kolvereid and Moen in Norway. Literature Junior Achievement Creates Alumni Success, www.ja.org Company Programme Alumni Evaluation, http://www.young-enterprise.org.uk/alumni Ung Företagsamhet Tvilling. Tatsiana Ksionda, Maj 2010 Young Enterprise Danmark: Resultat af spørgeskemaundersøgelse Charney and Libecap (2000): Impact of Entrepreneurship Education Kolvereid and Moen (1997): Entrepreneurship among business graduates: does a major in entrepreneurship make a difference? Journal of European Industrial Training 21/4 [1997] 154-160 5
The Danish Foundation for Entrepreneurship Young Enterprise The Danish Foundation for Entrepreneurship was established by the Danish government in January 2010. The foundation is intended to create a coherent national commitment to education and training in entrepreneurship and become a national knowledge centre for education and training in entrepreneurship. The Danish Foundation for Entrepreneurship and the non-profit organization Young Enterprise have merged with the joint aim of promoting young people s competencies within the fields of independence, innovation and entrepreneurship. The merged organizations have joined forces and operate as a knowledge centre and service organization for all educational institutions, which assist young people in education to establish careers as selfemployed or implement other skill imparting activities. This happens, for example, through development and sale of teaching resources, planning of activities, camps, fairs, competitions for young people under education and further training of teachers. The resources of the foundation shall co-finance projects and activities, which promote the vision of influencing views on and interest in entrepreneurship, independence and innovation, primarily via efforts in the educational sector. www.fondenforentreprenoerskab.dk The report is published by: Danish Foundation for Entrepreneurship Young Enterprise, Ejlskovsgade 3D, 5000 Odense C, Denmark; www.fondenforentreprenoerskab.dk Written and edited by: Lene Vestergaard, leve@ffe-ye.dk, +45 2442 0675; January, 2011